At one point in time, we all have done something that would be considered financially stupid because of the influence of our peers or other people. The urge to ‘belong’ can be damaging financially if you connect with the wrong people. There is no cultural money trap you cannot escape if you are determined. Here are some examples.
Do not change your outfit to match new clothing just to look ‘cool.’ Buy clothes that fit your lifestyle. Some people need classic clothing depending on their field of work, and others can get by without spending a fortune on new clothing. Visit thrift stores and garage sales to get high-quality clothing at a discount. Buy new underwear. Spend more on clothing that will last because if you buy cheaper material, you will spend more in the long run.
Shopping Is Fun
Sure, shopping can be fun, but shopping for the sake of shopping will do more damage to your pocket, and you will accumulate so much stuff you do not need. Buy only specific items when you need them, and do not go shopping to pass the time or when you feel a little stressed. If you are shopping online, put things in the cart but do not check out. Come back after a couple of days, and you will realize you do not need most of the items you had in your cart.
Spending To Impress
Some people come from certain cultural societies that expect them to live and behave in a certain way to portray a certain image. For instance, in some Asian communities, one is expected to drive a certain car, go to a certain school, and wear certain clothes so that others may not think you are slacking out. This lifestyle costs a fortune to maintain. Find your angle. Live as you wish and be financially independent.
You will be surprised at how much people splash on weddings and honeymoons. Why would you spend hundreds of thousands of dollars for a wedding and then spend many years paying off this loan? Why can’t you have a small, intimate event that won’t bore a huge hole in your pocket?
Expensive Monthly Car Repayments
A $500-$700 per month car repayment (before insurance and gas) seems to be normal now. More people are going for the big gas guzzlers that dig a well in their pockets, and they do not seem to care. They want to maintain a certain ‘standard,’ and this makes most live from paycheck to paycheck. Get something you can afford. If you do not want to buy a good second-hand car outright, look for a vehicle that does not push you into the red zone.
Going Out for Lunch Daily
You can save a ton of money if you decide not to go for lunch daily. Those $20 lunches add up to a considerable figure at the end of the year. Do not let your colleagues pressure you into joining them for those lunches. If possible, carry food from home. You will have a healthier meal at a fraction of the cost others spend dining out.
Drinking Expensive Coffees
People who love drinking coffee from large outlets know how costly coffee can be. If you love coffee, invest in a coffee machine and enjoy your poison without breaking the bank. An occasional visit to Starbucks or McDonald’s is okay, but a daily visit will hurt your pockets.
Having an Expensive Funeral
I mean, you are already gone… does it matter whether they spend $200 or $20000 to send you on your way? Do not leave your family in debt after you are gone as they struggle to give you a send-off befitting a king. You could even consider donating your body for science and save everyone the hustle! Make funeral arrangements before you die. Have insurance so that when you go, your family won’t have financial problems as they try to arrange for your funeral.
Having a Ton of Subscription Services
Where would you find the time to watch shows on Netflix, Hulu, Disney, Max, Apple+, Paramount, and others in one month? How much TV could you possibly watch? These are just money pits. Look for something you love and stick to that. Cancel the other subscriptions and save your money.
Not Paying Credit Card
Credit card usage has benefits. You create a good credit score when you borrow and repay on time, and some cards give you cashback on your purchases. Ensure that you pay off the card when due to avoid charges. If you cannot trust yourself with a credit card, consider paying using cash for whatever purchase you make.
Upgrading to New Phones and Cars
Some people have all the latest gadgets. While this could be a pretty cool thing to have, the cost of buying new phones every year can be quite high. What happened to the one you bought last year? Did it become obsolete? Has the technology been fazed out? Most new phones come with very few extra features and command a very high price. The same happens with cars. As long as what you drive is reliable and serves you well, use it for some time before considering upgrading it.
Buying the Exact Groceries Regardless of the Price
Many Americans complain about the rising cost of food when they visit the store but will still gladly pick their usual expensive produce rather than look for cheaper alternatives. When you find the price of eggs has doubled in your store, why not look for cheaper alternatives to your protein needs?
12 Frugal Hacks That Make All The Difference
A Reddit user who started the frugal journey with his wife a couple of years ago wanted to know the frugal hacks people had that made all the difference.
According to the OP, shopping grocery sales every week and planning their meals helped cut their bill from $250 to $100 per week. Other users shared their stories about frugal hacks they had that made some difference in their lives. Here are some of the best ones.
12 Items Frugal People Proudly Exclude From Their Shopping List
Frugal people are known to spend their money wisely. They live within their means and don’t spend a lot of money. According to a thread on Quora, here are some common things frugal people never buy.
23 Side Hustles You Never Considered That Make More Than Your 9 to 5
Have you ever wanted to make a lot of money from a side hustle and quit your 9 to 5? You may know about the typical side hustles, but I bet you never even heard of these lucrative side hustles!
9 So-Called “Frugal” Habits That Are Actually a Waste of Time and Money
Not everything is frugal! I am sure you have read articles and tips that promote frugal living and give some ideas that are just not frugal! These frugal myths float around and sometimes even cost people a lot of money!
10 Stupid Scams People Won’t Stop Falling For
It seems like every day there is a new scam popping up, promising to make you rich or solve all of your problems. Yet, despite the prevalence of scams and the numerous warnings about them, people still fall for them.